The beginning of 2025 presents an ideal opportunity for companies to perform a California employment law audit. This proactive step ensures your policies align with current regulations, your managers receive proper training, your company retains required records for the appropriate duration, and will greatly reduce potential PAGA penalties under the 2024 PAGA reform. To help guide your audit, we’ve outlined five key areas to review, along with suggested questions for each topic. If you need assistance, don’t hesitate to reach out—our team regularly conducts audits for clients as a preventive measure.

1. Hiring Practices

• Are applications seeking appropriate information?
  • Ensure compliance with state and local ban the box regulations.
  • Ensure applications and hiring managers are no longer asking about marijuana use, and employers in the fast-food industry must be careful not to condition hiring upon the applicant already having a food handler card.
• Are new hires provided with required policies and notices?
• Are new hires provided and acknowledge recommended policies?
  • For example: meal period waivers for shifts less than six hours
• Are hiring managers trained about the correct questions to ask during the interview?
• Does the company provide new hires (and existing employees) with arbitration agreements that comply with California law?

2. Records

• Are employee files maintained confidentially and for at least four years?
• Are employee time records maintained for at least...

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